New Delhi, Dec 4: Central government employees will get higher allowances under the 7th Pay Commission recommendations with their January salary, said Finance Ministry sources. The government is planning to pay high allowances under the 7th Pay Commission recommendations from January 2017, however no final decision has been taken over arrears. The demonetisation drive that has led to a massive cash shortage has also delayed the payment of higher allowance under the 7th Pay Commission recommendations.The government hopes that situation will return to normal after December 30 and it will be able to pay higher allowances to its 4.8 million employees.
According to a report of the Sen Times, the Finance Ministry has confirmed that central government employees’ salaries for January will be in line with the higher allowances. The cabinet will take the final call over the payment of arrears, said the report. The central government employees have been waiting for fatter allowance since July when the notification for the implementation of the 7th Pay Commission recommendations was issued. While the Centre is planning to pay higher allowances with retrospective effect from August 2016, central government employees’ unions have demanded for implementation of the allowances with retrospective effect from January 2016.
“This depends on the cabinet. If the cabinet gives the nod higher allowances with retrospective effect from August 2016, the arrears will be paid,” a Finance Ministry source was quoted as saying. “The government faces severe attack for cash crunch because of demonetisation. But the situation will return to normalcy after the deadline of December 30 for deposit of invalid Rs 500 and Rs 1,000 notes,” he added.
The 7th pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances, which was opposed by the central government employees’ unions. Union Finance Minister Arun Jaitley formed the ‘Committee on Allowances’ on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance. The committee is ready with its report and will soon submit to the Finance Ministry. Earlier we reported that the government has decided to stick to the recommendations of the 7th Pay Commission on basic pay and there will no no hike in basic pay or fatter allowances.